Cover14.12.12_cover template07/12/1215:27Page1 THE BUSINESSOFMUSIC www.musicweek.com 14.12.12 £5.15 50
9 776669 776136 Project1_Layout 1 07/12/2012 15:41 Page 1 CoverV5_cover template11/12/201220:01Page1 Killing us softly? T THAN APPLE•SOWHYISTHEINDUSTRY NOT GETTINGA‘LEVELPLAYING FIELD’FROM GOVERNMENT? TO OURECONOMY ANDBEGGARS ISPAYINGBRITISH MUSICTRADECONTRIBUTES £5bn MORE UK TAX Government can assistmusicGovernment can and is investigating how the ‘Creative Industries’ lastweek. £6m investment handoutto Chancellor George Osborne’s trade beingomitted from culminatinginthe letdowns – Culture Select Committee,Culture Select which to the influential evidence Geoff Taylor were togive called Music’s JoDippleandtheBPI’s representatives UK including trade just one dayafter mentioned.Music wasnoteven announced forthesemarkets. up taxbreaks thatwere already topping last Wednesday (Dec5)– fund inhisAutumn Statement theseven-figureindustries skills movie, andanimation TV grant Britain’s videogames, told theCommittee that themusic other creative industries. industry needed support from neededsupport industry POLITICS THE BUSINESSOFMUSIC across localradio Saturday night slot Introducing getsa NEWS 03 report fromDecember2011: ‘Music BY TIMINGHAM & Visual andPerforming Arts are Osborne announcedhewould In thetwo hoursession, Dipple The Autumn came Statement Industries EconomicEstimates the largest employers inthe the largestemployers Government’s Creative own a series ofGovernment a series by frustrated has beenleft musiche British industry Creative Industrieswith 300,000 employed in 300,000 employed According tothe 2009’ Government keyareas, inseveral ticket market andpiracy.ticket and powers toquashthesecondary cloud, improved access tofinance around andthe copyright certainty policiestocreate including music industry brought nomentionof Autumn Statement Snubbed: tax onany oftheprofits from thatincome. £3.3bn intheUKlastyear -butpaidnocorporation its advertising salesgeneratedits advertising £175m intheperiod. 01o ae f£04 despite anestimate that 2011 onsalesof£20.4m– Facebook UK,which paidjust£238,000intax more thanfour millioncopiesintheUK. Adele’s record-breakingalbum21,whichhassold Trade, enjoyed profitable 2011 avery releasing after TAXMAN ROLLINGINITDEEP Meanwhile, Applepaidjust£10m corporation Amazon.co.uk generated revenues ofmorethan Its public bill compares very favourablyIts publicbillcomparesvery with Osborne’s www.musicweek.com 4AD, MatadorandRough a stake inlabelssuchasXL, seen by according to financial data corporation taxinFY2011, in £11.4m honest – and very whopping – Group paida Beggars The company, whichholds Music Week operating on; we needlegaland need toknow whatwe are Clash and The Beatles. Butwe Maiden, Pistols,The Sex The thatgave peopleIron country despite fallingratings muscle shouldn’t beindoubt Why XFactor’s promotional ANALYSIS 16 Dipple said: “We are the BEGGARS PAYS BIGINADELE’S RECORD YEAR . from interaction with it.” the obligationtowards society ofthosewhoprofit and againstthelatter. Government to discriminate infavour oftheformer and rights-owning businesses,let alonefor paying lower taxrates thandomestic creative for overseas basednew tech companiesto be to seewhy it'sinsociety's bestoverall interests £6.1m intaxonsalesofjustunder£69m. accounts available. £500m intheyear to September 2010, thelatest main UKdivisions,AppleRetail UKLtd,showed it over theperiod. despite earninganestimated £6bnintheterritory tax intheUKitslastpublishedfinancial year, paid taxofjust£3.79monsalesmorethan “Paying taxattheproper rates isacivicduty, and According to Said Beggars founder Martin Mills:“It’spretty hard founder Martin Said Beggars Another subsidiary, Apple(UK)Ltd,paid h DailyMail The first stage inthefight meaningful aboutthe many feelwillbring which Act are implemented– Government’s DigitalEconomy first stepsofthe practical than ayear towaituntilthe industry.” grow our in andhow to we are investing so we know what business certainty and we need consumer certainty licensed markets. We need industry doesbenefit from industry for exceptions tocopyright. concerns existover stateproposals against piracy. Meanwhile, And althoughthemusic The tradehasmore , oneofApple’stwo across publicperformance shows asurplusof£114m shows the Britishrecordindustry of overseasearningsfrom royalties, syncand A 2011BPIsurvey licensing new licensed services ofadigital licensedservices new global market. able toharnessourassetsthe like ourswhichwillbe industries trainedworkforce.highly talentneedsaskilledand British field toothersectors. playing mean we don’t wantalevel challenges butthatdoesn’tnew ago. We are responding tothe different tothatof10or20years being digitised. skillsbaseis Our is industry and training. Our on skills offer usthesamesupport commercial gain. Now theycan’t exploited by for third parties our digitalassetswhentheyare valuefrom toderive our ability thatcouldundermine copyright proposals forexceptions to They mightsoon introduce They won’t implementtheDEA. keen todepress ourexpectations? conditions.the right double ourmarket, ormore, with reach oftheinternet, we could demand forourmusic andthe thevastglobal years. With growcan fastover thenextfew music television, radio and BIG INTERVIEW Box boss GidonKatz on TV Continues onpage 2... finance from Council theArts “Growth will come from around eco-system raw “The “Why istheGovernment so “Why 14.12.12 14 Channel 4’s newshow music is an industry that music isanindustry and CC Skills, Osborne’s Music Week Autumn Statement snub has left many snub hasleft class citizens. class areas ofthebusiness feeling likesecond Jo Dippletold : “British £5.15 50
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EDITORIAL ’We need a level playing field’ ...continued from Page 1 music was left out of the that we already make to GDP “I have just given evidence to announcement in the Autumn is recognised. the Culture, Media and Sport Statement. I hope the “For many years through my Committee and our message to Culture, Media and Sport Select position in Live Nation I have them was basically: ‘Give us a Committee will support our call strived to deliver ‘best in class’ Making level playing field and allow us to for a level playing field for music Continual Professional exploit our assets in legal and when it comes to Government Development (CPD) for my the case licensed digital markets.’ support for the creative industries.” existing staff, while seeking out “That’s all we ask from Live Nation Entertainment the best talent for our burgeoning THE BRITISH music industry has a reputational problem. Government. We have fought International COO Paul Latham, business. Having been honoured I’m not talking about the ‘fat cat’-isms spewed forth by hard to be this successful and we who is CCSkills founder chair, to be appointed Chair of Creative copyright infringers. Blame your old boss for those. have the potential for vast fast and Cultural Skills (CCS) I have And I’m not talking about consumers getting angry that they’ve growth in global digital markets. looked to bring their expertise not According to the had to pay a fiver to print off their tickets at home. Blame your “We welcome the recent only into my business but also current boss for those. award from the Arts Department for Culture, Media into all those forward-thinking I’m talking about gorgeous Gideon (sorry, George) Osborne and, Council to help young and Sport: ‘The music industry is one peers. From a standing start we unemployed people find have established over 1,800 more pointedly, the DCMS - neither of whom give this trade the of the UK’s biggest and most culturally dues it clearly deserves. Their reluctance to sprinkle praise and entry-level work in the apprenticeships across the significant creative industries. It contributes investment on what is patently an unfashionable market within music industry. UK real creative industries, none Government is starting to set off pretty deafening alarm bells. Music is launching a nearly £5 billion annually to the of whom would have been Music Week’s bewildered online reportage of Osborne’s Music Industry national economy, of which £1.3bn comes from recognised in George Mentoring scheme, an Osborne’s narrow coterie! Autumn Statement last week - in which £6m of skills funding was exports earnings; it employs around 130,000 apprenticeship scheme, “Now through initiatives allocated to the ‘Creative Industries’ in a proud press release that people; it is the third largest market in the didn’t even mention music - was one thing. But the DCMS training for instigated at UK Music by Jo response perhaps said everything about how music is perceived development inside the world for sales of music and is second Dipple, in conjunction with as a dying dinosaur amongst the very elected powerbrokers who industry, and eventually a only to the USA as a source CCS, we have established a full- could kickstart its revival. skills academy. of repertoire’ time Music Skills Manager to “Help from CCSkills and the work with all the UK Music Arts Council is fantastic and entities to ensure CPD and “Cameron should ask his friends at Apple what recent support of £15m from told Music Week: “The recent recruitment are top of the agenda. exactly is selling iPhones. It ain’t Wallace & Gromit” National Lottery will be a vital announcement by Chancellor “The investment we all make boost to help us develop our skills George Osborne, of a £6m in finding the next generation The allocation of the £6m was apparently “put in place to and training programme. investment fund to provide entry of music makers, producers, ensure that skills in these industries will keep pace with the “UK Music is proud to be part level jobs in Britain`s Creative operatives et al needs to forecast increased demand for their services, thereby maximising of this. But we want a level Industries, is most welcome. be recognised. their potential for growth”. playing field when it comes to “However by specifying it is for “It is imperative that all of us Okay, they didn’t say, “And not yours.” But with those recorded Government policy yet it seems film, TV, animation and video in the music industry rally behind album figures still dipping by double figures each year, perhaps they don’t play fair when it comes games shows how far we in this initiative if we are ever to we can safely append it. to the music industry. the music industry have yet to have a voice in the wider creative The BPI and UK Music recognise this problem; they both know “We don’t understand why travel before the contribution industries community.” plenty better than me that the cross-party dilly-dallying over the implementation of the DEA and the dangerously wobbly definitions of copyright exceptions flying around at the highest level threaten to stunt any chance of industry resurrection. Hall Or Nothing snapped up And yet I can’t shake the feeling that this is primarily an issue of communication. I worked in video games - 25% tax break, give- UK media firm James Grant includes Manic Street Preachers, Martin Hall, MD of Hall or us-a-chunk-of-that-£6m video games - for six years. The best UK Group ( JGG) has acquired The Script, The Horrors and Nothing and James Grant developers are buggering off to Canada: in fact, almost all of music management agency Hall Pixie Lott. Music, said: “The culture and them. It’s a crisis the Government wants to stop. Movies are Or Nothing. Mike Wallwork, COO of ethos of James Grant is an ideal suffering the same issue. I’m sure animation is too. JGG said the buyout would James Grant Group, said: “Hall fit for Hall or Nothing, and once Music isn’t. Because its creatives - the songwriters - start off in bolster its ‘expertise in the music or Nothing is a widely regarded, we heard of their ambitions in a bedroom with a guitar, piano or ProTools. They don’t need cash. space, to complement its growing well respected and highly music management we knew this What does, of course, is the whole process: Adele got where management and professional successful music management represented a great opportunity she is today because of a ginormous talent that Osborne’s services proposition for its clients company and we are delighted to for us and our clients. millions wouldn’t have affected. But it was a talent enhanced across media, music and sport’. welcome them to our Group. “We have survived and and shouted about thanks to A&R expenditure (that’s R&D risk to The company will now create “Expanding our footprint in thrived as an independent agent you, Mr Osborne), marketing millions and the finest promo types a Music Management division music has always been part of for almost 20 years but the money can buy; an inarguably vital amplification of her brilliance. for JGG and will retain its our strategic growth plans and industry landscape is changing It is largely thanks to the significant role played by the highly- current name and branding. this acquisition represents a rapidly. We knew we needed a skilled, digitally-savvy business leaders cocooned in this process Founded in 1989, Hall Or logical extension to our other strong partner to help us adapt that Britain will once again stand tall at the Grammys in 2013. Nothing looks after a wide range management businesses in the and take the business to the next Perhaps David Cameron should ask Apple how many iPhones of musicians and bands, from entertainment sector. level, and James Grant Wallace & Gromit sell and how many are shifted by the product Brit Award winners and multi- “We are very excited about represents just that partner – of music’s infrastructure - a product that is defining the world’s platinum sellers to some of the the industry knowledge, with a strategic vision to match. mutating digital landscape, with or without Osborne’s handouts. hottest up-and-coming musical experience and reach the Hall or “We look forward to the Tim Ingham, Editor talent in the UK. Hall or Nothing team will bring to our opportunities that this deal will Nothing’s current clients Group in the music arena.” bring both us and our clients.” Do you have views on this column? Feel free to comment by emailing [email protected] 02-03 NEWSV5_News and Playlists 11/12/2012 20:17 Page 3
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UNSIGNED DISCOVERY PROGRAMME GETS SATURDAY NIGHT SLOT ACROSS NETWORK BBC Introducing to relaunch across all local radio stations MEDIA “Presenting new, emerging Introducing, said: “This new artists is as exciting as it is dedicated Saturday night BY TIM INGHAM rewarding,” said Jackson. timeslot for all the regional BC Introducing – the “To see musicians with whom BBC Introducing shows is great B Beeb’s programme we’ve worked prior to their fame news and means that music dedicated to supporting now selling out massive tours, fans, wherever they are in the unsigned, undiscovered climbing the charts and getting UK, know when to tune into musicians – will be broadcast mainstream airplay is a real thrill. BBC Local Radio to discover across all the Corporation’s local “On my programme, for the latest new music in their radio stations from January 5, example, we had a good deal to area with one single 2013 in a new, dedicated do with the likes of Jake Bugg, appointment to listen each week Saturday night slot. Kasabian, Coldplay, Muse and across networks. The programme aims to give Ed Sheeran well before they “The change across the local bands a platform to get found mainstream success.” regional shows underlines BBC their music out to a wider He added: “It isn’t necessarily Introducing’s continued audience. The Ting Tings, all about ‘making it’ in a high commitment to supporting Florence + The Machine and profile sense. The BBC unsigned artists and under the Two Door Cinema Club have all Introducing Masterclasses have radar talent. come through the system. Bugg eyed: BBC Radio helped hundreds of artists take “It’s great to see these shows Nottingham’s Introducing Show Its most recent success story earmarked Jake Bugg for stardom the next small step, offering right at the heart of BBC Local is Jake Bugg, who topped the them inspiration from top Radio, continuing to build on charts with his debut album experts in all fields of the successful relationships with having gained early exposure on musicianship, developing network radio, sharing new BBC Radio Nottingham’s their musical skills as well as talent with Radio 1, Radio 2, Introducing show. knowledge of the new music having hosted the station’s local sparking creativity.” 1Xtra, 6Music and the Asian BBC Introducing is hosted scene. Dean Jackson presents the new music show The Beat for Jason Carter, head of Live Network, bringing them to a by presenters with a strong local BBC Radio Nottingham version 20 years. Music & Events and BBC wider audience,” he added. Brits drop Outstanding Contribution gong for War Child tribute
The Brit Awards 2013 won’t carry an Outstanding “A lot of people say that music cannot change the world… I think it Contribution prize, but will really can make a difference. Music can make people aware, put the instead pay tribute to industry issue into focus and shine a spotlight on the bad stuff... I have been charity WarChild with a Special supporting War Child since 1995. Their work saves lives. I urge everyone Recognition trophy. 2013 marks War Child’s to support War Child” SIR PAUL MCCARTNEY 20th anniversary, representing two decades in which it has record the Help album in 24 Bosnian conflict, we had one world… I think it really can saved the lives of more than hours; in 2009 Coldplay, simple belief – that children are make a difference. 500,000 children in the world’s The Killers, Bono and Gary the innocent victims of war and “Music can make people most war-torn countries. recognition for their vital work Barlow shared the stage at no child should be affected by aware, put the issue into focus The charity, heavily helped as well as saying thank you to Shepherds Bush Empire, at a it. Twenty years on, our belief and shine a spotlight on the bad by music industry donations all the artists who have given War Child concert which also remains the same. stuff. It also eats away at the and fundraising, has worked in their time, help and energy to marked the relaunch of the “Music has been a powerful horrors and alleviates some of Bosnia, Chechnya and Rwanda something so important.” historic London venue. tool in rebuilding children’s the pain by raising the money to as well as Afghanistan, Iraq War Child-affiliated records War Child has been lives. This award helps further help these children. and the Democratic Republic and concerts have won great supported by everyone from highlight our work. Everybody “I have been supporting War of Congo. acclaim in the past two decades: David Bowie to Elbow; Stevie who works for War Child and Child since 1995. Their work Brits chairman David Joseph in 1995 U2 recorded Miss Wonder to Muse; Luciano everybody who has helped War saves lives. I urge everyone to said: “For two decades now, War Sarajevo with all proceeds going Pavarotti to Amy Winehouse. Child should feel fantastically support War Child.” Child has worked with artists to to the charity; in the same year War Child’s music and proud of all our ongoing The winner of the Brit raise funds and awareness to Paul McCartney, Radiohead, fundraising director Ben achievements.” Awards 2013 Critics’ Choice help children whose lives have Blur, Manic Street Preachers, Knowles said: “This is fantastic Supporter Paul McCartney prize and full category list will been torn apart by war. The Oasis, Paul Weller and The news for us. When we began in said: “A lot of people say that be announced on Thursday, Brits are proud to give Stone Roses joined forces to 1993, in response to the music cannot change the December 20. 04-05 - NEWS SPREADV5_News and Playlists 11/12/2012 18:09 Page 4
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XX GOES DIAMOND IN EU AS BOCELLI HITS MULTIPLE DOUBLE-PLATINUM NEWS IN BRIEF